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Northwest-side industrial park sells for almost $30 million

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The North by Northwest Business Park near 86th Street and Georgetown Road has been sold to firms in Minneapolis and Baltimore for $29.6 million. The sale of the seven-building, 1.1-million-square-foot industrial complex closed Dec. 30.

The park was sold by an affiliate of Multi-Employer Property Trust to a joint venture of Minneapolis-based Biynah Industrial Partners and Baltimore-based Alex. Brown Realty. The property is a mix of mid-sized flex industrial and modern bulk warehouse space. MEPT retained an unspecified amount of land in the park.

Aviva Life & Annuity in Des Moines, Iowa, provided financing, and Alex.Brown's ABR Chesapeake Fund III committed $6.9 million in equity to the joint venture.

The amount paid for the industrial portfolio makes it one of the largest local deals in 2009, according to John Merrill, an investment broker for the local office of CB Richard Ellis. But last year was a down year for sales because of the recession, and the price—about $27 a square foot—is lower than it would have been four or five years ago. The same property might have sold for $40 a square foot before the economy turned, Merrill said.
 
Jeff Josephs, Biynah’s managing director, said his firm’s experience with another Indianapolis industrial property sealed the deal.

“This is one of the few markets in the Midwest where we have seen positive absorption and a strong velocity of deal flow,” Josephs said. Biynah, in partnership with Alex Brown Realty, also owns a three-building, 360,000-square-foot industrial complex on the east side, at 250-258 Kitley Ave. That property is 90 percent leased.

Dallas-based Trammell Crow Co. launched development of North by Northwest in the 1990. The complex of industrial buildings is 84 percent occupied. The newest property in the park, built in 2008, is a 100,000-square-foot structure that houses a warehouse and transportation center and a small retail outlet for Goodwill Industries.
 
Josephs said the complex was attractive because of its variety of tenants, none of which occupies more than 11 percent of the total square footage. The tenant mix and absence of any major leases that are about to expire makes North by Northwest attractive from an income standpoint, he said.

The purchase was contingent on the seller completing lease renewals with four tenants representing 22 percent of the park’s space. Leases that account for another 25 percent of the space have at least seven years remaining.

Among the tenants renewed as part of the transaction is Kent H. Landsberg Co., a packaging operation that occupies 73,000 square feet. Sales contingent on lease renewals are a growing trend, said Merrill of CBRE.

Colliers Turley Martin Tucker has been responsible for leasing at North by Northwest and is being retained. CTMT’s Michael Weishaar, who handles leasing at the Kitley Avenue property on the east side, is now the lead broker at North by Northwest.

Former CTMT industrial broker John Huguenard was the seller’s broker. Huguenard has since left CTMT for Jones Lang LaSalle.
 

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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